Default Prevention Workshop 2001

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Title Page 60 point type Title 44 pt., Bullet
32 pt., dash 30 pt. Title Box1.08h/1.08v Text
Box 1.08h/2.17v Top footnote 1.42h/0.50v Top
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Insert School Logo Here
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• Unraveling the Mysteries of Credit Reporting

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Unraveling the Mysteries of Credit Reporting

• Agenda

• Credit reports and credit scores
• Benefits of good credit
• Protect your benefits
• Harnessing the power of credit reports

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Navigating Credit Reports and Scores

• What is a Credit Report?

• History of your ability to manage creditsimilar
  to a transcript
• Lenders report
• Payment history
• Amount borrowed
• Credit limits
• Delinquencies

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Navigating Credit Reports and Scores

• What is a Credit Score?

• Score probability of paying new loan
• Grades of loans
• A is the most creditworthy borrower
• B is the average borrower
• Sub Primehighest risk borrower

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Navigating Credit Reports and Scores

• What Scares a Lender

• Late payments
• Excessive number of accounts
• High balances
• Many recently-opened accounts
• Unpaid accounts

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Navigating Credit Reports and Scores

• What Excites a Lender

• Stable class schedules
• Steady employment
• Consistent payments
• On-time loan payments
• Responsible student loan management

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Benefits of Good Credit

• The Power of Good Credit

• Lowest loan rates
• Fast loan decisions
• Establish and build credit
• Save money

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Benefits of Good Credit

• The Power of Good Credit

• Better job opportunities
• More apartment/house choices
• Open checking account
• Increased purchasing power
• No money down on cars
• Lower interest rates

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Benefits of Good Credit

• The Power of Good Credit
• 20,000 Car Loan Payments With

• Excellent Credit
• 387

• Sub Prime Credit
• 508

• Monthly difference is 121
• Thats over 7,272 over life of loan!

60-month term. Excellent credit rate is 6 and
sub prime rate is 18.
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Protect Your Benefits

• Protect Your Benefits

• How to secure your good credit
• Pay bills on time/pay before due date
• Automatic payments
• Reduce interest rates
• Check your credit report
• Protect yourself from fraud

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Protect Your Benefits

• Fraud

• Criminals steal nearly 700,000 identities a year1
• Thieves go through trash
• Social Security number on checks
• Extra cards help thieves if wallet is lost or
  stolen

1Identity Theft Resource Center San Diego, CA
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Protect Your Benefits

• Verify Your Credit Report!

• 76 of credit reports have errors1
• Check your report once a year
• Name
• Address
• Social Security number
• Birth date
• Accuracy of accounts

1EstimateConsumer Credit Counseling of Orange
County Web Site
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Protect Your Benefits

• Protect Yourself Against Fraud

• Pay bills on time
• Send bills from secure, locked mail box
• Opt out of pre-approved offers
• Beware of phone scams

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Protect Your Benefits

• Credit Contacts

• Equifax 800.685.1111 or equifax.com
• Experian 888.397.3742 or experian.com
• TransUnion 800.888.4213 or tuc.com
• Opt out of offers Call 888.5OPTOUT

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Harnessing the Power of Credit Reports

• How to Read Credit Reports

• Personal identification
• Summary of key information
• Public record
• Inquiries
• Credit accounts
• Payment profile

R08-R011
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Unraveling the Mysteries of Credit Reporting

• No Longer a Mystery

• Credit reports and credit scores
• What excites and scares a lender
• Benefits of good credit
• Fraud
• Protecting your identity
• Check credit reports opt out of offers

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• Whip out your phone!
• Youve got some calls to make!

• Things to Do
• Order Credit Report
• Opt Out of Mailings